How Has the Smart Government Market Size Evolved in Recent Years?
The smart government market has seen considerable growth due to a variety of factors.
• In recent years, the size of the smart government market has experienced the rapid expansion. Its worth is set to increase from $37.67 billion in 2024 to $43.8 billion in 2025, with a compound annual growth rate (CAGR) of 16.3%.
The growth during the historic period is a result of digital transformation projects, the utilization of data analytics to facilitate informed decision-making, the introduction of open data initiatives, improvements in smart infrastructure and urban planning, the adoption of blockchain for improved security and transparency, and advancements in emergency response and public safety.
What are the Market Size and Expected Growth Rates for the Smart Government Market?
The smart government market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for smart government is projected to experience a considerable increase in the coming years. It is estimated to reach $95.24 billion by 2029 with a compound annual growth rate (CAGR) of 21.4%.
This growth during the forecast period can be due to several factors including the need for emergency response and resilience planning, the implementation of digital identity solutions, a heightened focus on privacy and data security, the adoption of cloud computing platforms for scalability, and a concentration on smart city projects. Significant trends for the forecast period encompass the acceleration of digital transformation, the amalgamation of IoT for smart infrastructure, an intensified focus on cyber security and data protection, the application of blockchain for enhanced transparency and security, initiating smart city and urban planning projects, the creation of open data initiatives for transparency, and the execution of renewable energy and sustainability schemes.
Which Key Drivers Are Propelling The Smart Government Market's Growth?
The plunge in smart government technologies investments tends to enhance the smart government market's expansion. A global surge in the governmental organizations' expenditure on network management, cybersecurity, and other smart government aspects aims to provide reliable, effective, and secure services to the citizens. For example, in August 2024, The Office for National Statistics (ONS), an executive entity of the UK Government, disclosed that a staggering sum of $1.476 billion has been set aside from 2020 to 2025 for the deployment of gigabit-capable broadband to 85% of the UK populace by 2025, intending to extend 100% coverage by 2030. By 2022, they've already consumed $534 million, with an excess of $905 million reserved for spending from 2023 to 2025. Hence, the surge in investment in smart government technologies is predicted to propel the need for smart government platforms and solutions in the upcoming years.
What Are The Key Segments Within The Global Smart Government Market?
The smart government market covered in this report is segmented –
1) By Type: Open Data Platform, Analytics, Government Resource Planning System, Security, Remote Monitoring, Network Management
2) By Deployment: On Premise, Cloud
3) By Component: Solution, Services
Subsegments:
1) By Open Data Platform: Data Portals, Data Visualization Tools, API Management Solutions
2) By Analytics: Predictive Analytics, Descriptive Analytics, Prescriptive Analytics, Geographic Information Systems (GIS)
3) By Government Resource Planning System: Financial Management Systems, Human Resource Management Systems, Asset Management Systems, Procurement Management Systems
4) By Security: Cybersecurity Solutions, Identity And Access Management, Physical Security Systems, Incident Response Tools
5) By Remote Monitoring: IoT Sensors And Devices, Environmental Monitoring Systems, Infrastructure Monitoring Solutions
6) By Network Management: Network Performance Monitoring, Network Security Solutions, Cloud Network Management, Traffic Management Systems
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How Are New Trends Impacting The Size Of The Smart Government Market?
The integration of advanced technology is becoming a prominent trend in the smart government market. Developments in technology such as the Internet of Things (IoT) are increasingly being infused into novel systems and cloud services to enhance the efficiency of governmental operations. The ubiquity of IoT has significantly improved the interaction between governments and citizens, thereby supporting the generation of public benefits. In the context of smart city initiatives, IoT technology is employed to create and deliver interconnected solutions that promote the welfare of communities. In February 2022, Canadian tech and media corporation Rogers Business launched a range of IoT smart city and smart building solutions tailored to meet the growing infrastructure needs of governments and organizations. The Smart Cities and Smart Buildings division at Rogers Business is set up to collaborate with multiple vendors to engineer solutions, from detecting water leakage sensors to traffic signals powered by AI.
Who Are the Key Players in the Smart Government Market?
Major companies operating in the smart government market include:
• ABB Ltd.
• Amaon Web Services Inc.
• Avaya Inc.
• Capgemini SE
• Cisco Systems Inc.
• Entrust Datacard Corporation
• Huawei Technologies Co. Ltd.
• International Business Machines Corporation
• Imex Systems Inc.
• Nokia Corporation
• OpenGov
• Oracle Corporation
• UTI Group
• Decidium
• CitizenLab
• Hughes Identification Devices (HID) Global Corporation
• Accenture PLC
• Atos SE
• CGI Inc.
• Cognizant Technology Solutions Corporation
• DXC Technology
• Fujitsu Ltd.
• HCL Technologies Limited
• Hitachi Ltd.
• Infosys Limited
• NEC Corporation
• NTT DATA Corporation
• SAP SE
• Tata Consultancy Services
• Tech Mahindra Limited
What are the Regional Insights into the Smart Government Market?
North America was the largest region in the smart government market in 2024.Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the smart government market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
